Rumors about the probable closure of all stock exchanges by the People's Bank of China and the introduction of a trading ban seemed to scare investors and traders slightly. It is evident because after these conversations, which have been going on since the end of last week, the bitcoin rate has recovered only slightly from the level of 4000 USD.

Today, the Wall Street Journal reported that the Chinese authorities have submitted a draft version of the document that will regulate trade in cryptocurrencies. Its main essence is the plan of the NBK to introduce a ban and subsequently the closure of all cryptocurrency exchanges in the country, as well as completely prohibit companies from selling cryptocurrency. However, we are talking only about legal entities. Trades between individuals will not be prohibited.

The Chinese authorities may take this step after an annual study of this issue. The danger is in the ease of money laundering through these exchanges. Also, cryptocurrencies allow citizens to withdraw money outside of China, bypassing the state-controlled banking system, which is also a serious problem.

However, despite this, neither the text of the document itself, nor official statements from the Chinese authorities at the moment confirm all of this. These are all just rumors.

The largest Chinese exchanges, OKCoin, BTC China and Huobi, continue to work as usual.

Bitcoin (BTC)

The signal to buy Bitcoin (BTC):

A great importance now is the level of 4364.50, which kept bitcoin from growth since last week. Its breakdown, with the fixation above, can return it to the market of speculative traders. This will lead to the growth of bitcoin in area 4537 and, possibly, to update to 4654. In case of a depreciation, you can consider buying near the support level of 4183, where the moving averages are also located.

The signal to sell Bitcoin (BTC)

You can start selling bitcoin after an unsuccessful attempt to get hold of the level of 4364. A false breakdown and a return under 4364 can lead to a rapid decrease in bitcoin in the support area of 4183. The breakdown of this level will beat the bitcoin to the psychological mark of 4000 USD. Any negative news from China could lead to a sharp drop in BTC.